The Global Entrepreneurship Monitor (GEM) Scotland for 2025-2026 has found that a growing number of people in Scotland are participating in entrepreneurial activities — with nearly one in nine adults starting or running a young company.

The report found that entrepreneurial activity in Scotland grew by nearly two percentage points to a new high of 11.7% – the highest figure since the survey began in 2002.

The annual measure of entrepreneurial activity also found the number of people with established businesses increased to just over one in 10.

The report is compiled by the universities of Edinburgh and Glasgow. It is led by The University of Edinburgh’s Business School, and is funded by the Scottish Government.

Samuel Mwaura of the University Edinburgh’s Business School said: “This report identifies the big trends shaping Scotland’s entrepreneurship.

“It is clear that entrepreneurship provides a clear pathway to reduce economic inactivity, particularly among young people. Our spotlight has revealed some disparities in the regions and by gender – particularly in Eastern Scotland which appears to be a straggler region across a range of dimensions.

“The regional disparities highlight the importance of greater examination and tailored support to be directed to ‘liminal’ areas sandwiched between the central belt and the peripheral areas as these can be easily overlooked.

“Gender parity in opportunities for young women to start a business is encouraging, but the stark disparity in ability to fully establish and sustain businesses is a worrying concern that policy and enterprise support must address.”

Cabinet Secretary for Economy Stephen Flynn said: “It is incredibly encouraging to see this year’s GEM survey showing a record number of people in Scotland being involved in entrepreneurial activity since the survey began more than 20 years ago.

“It indicates that our young and aspiring entrepreneurs have growing confidence in the country’s conditions and business environment.

“We know there is more to do to ensure that more people, regardless of their gender, background or region have the opportunity and support to start and grow a business.

“The Scottish Government’s Programme for Government makes a clear commitment to creating a world-class entrepreneurial economy and are committed to backing our entrepreneurs at every stage of their business journey.”

The research draws on data from 2,085 adults surveyed by GEM in Scotland, as part of a larger sample of 8,513 respondents in the UK.

The GEM survey highlights the emerging evidence on entrepreneurial attitudes, aspirations and activity in Scotland.

The analysis highlights the rise in entrepreneurship, particularly among younger age groups, but also draws attention to regional and gender disparities.

The report found one in five of 18-64 year-olds in Scotland “class as entrepreneurs.”

Participation in early-stage entrepreneurial activity among 18-24 year-olds has remained steady in Scotland at around 12% since 2020, a contrast to UK-wide concerns around rising economic inactivity among young people.

The level of activity is roughly equal between young men and women, however, established business ownership rates are much lower among 18-24 year-old women compared to their male peers.

Young people presently not engaged in entrepreneurial activity have positive attitudes towards it and are more likely to spot startup opportunities than other groups, the researchers say.

A gender gap remained with 8.7% of working-age women in Scotland found to be running or setting up a new business in 2025, compared with 12.2% of men. Eastern Scotland was recorded as the lowest in the country for women entrepreneurs at 4.6%.

The authors highlighted “concerning” regional disparities, with Eastern Scotland underperforming compared to other areas.

The proportion of people involved in entrepreneurial activity in Eastern Scotland – defined in the report as the region north of the Firth of Forth combining the Local Authorities of Angus, Dundee City, Clackmannanshire, Fife, Perth and Kinross, and Stirling – was the lowest rate at 9% in 2025, below the national baseline of around 12%.

The regional disparities have been highlighted by the division of the old Eastern Scotland region into two regions – East Central and a new Eastern Scotland north of the Firth of Forth – which reveals previously hidden disparities in regional entrepreneurial activity, the reseachers said.

In contrast, East Central Scotland – defined as the City of Edinburgh, East Lothian, Midlothian, West Lothian, and Falkirk – has a level of 13%. West Central, which returned a rate of around 14%, leads the way in Scotland.

Entrepreneurial activity among minority ethnic groups in Scotland continues to outpace that of white Scots at 21% compared to 11%.